Text: HF00678 Text: HF00680 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.330, Code 2003, is amended to read 1 2 as follows: 1 3 15.330 AGREEMENT NONCOMPLIANCE PENALTIES. 1 4 1. A business or group of businesses shall enter into an 1 5 agreement with the department specifying the requirements 1 6 which must be met to satisfy the criteria of section 15.329. 1 7 The department shall consult with the community during 1 8 negotiations relating to the agreement. The agreement shall 1 9 contain the following provisions: 1 101.a. If the business or group of businesses has not met 1 11 more than ninety percent of the job creation requirement in 1 12 section 15.329, subsection 1, paragraph "f", it shall pay a 1 13 percentage of the incentive receivedunder section 15.334, or1 14if the business or group of businesses does not receive the1 15incentive under section 15.334, thenunder section 15.333 as 1 16 follows: 1 17a.(1) If the business or group of businesses has met 1 18 fifty percent or less of the requirement, the business or 1 19 group of businesses shall pay the same percentage in benefits 1 20 as the business or group of businesses failed to create in 1 21 jobs. 1 22b.(2) If the business or group of businesses has met more 1 23 than fifty percent but not more than seventy-five percent of 1 24 the requirement, the business or group of businesses shall pay 1 25 one-half of the percentage in benefits as the business or 1 26 group of businesses failed to create in jobs. 1 27c.(3) If the business or group of businesses has met more 1 28 than seventy-five percent but not more than ninety percent of 1 29 the requirement, the business or group of businesses shall pay 1 30 one quarter of the percentage in benefits as the business or 1 31 group of businesses failed to create in jobs. 1 322.b. If a business or group of businesses does not meet 1 33 the wage requirement of section 15.329, subsection 1, or any 1 34 of the three criteria selected by the business or group of 1 35 businesses under section 15.329, subsection 2, in any one 2 1 year, it must meet that requirement in the following year or 2 2 forfeit the incentives for that year. 2 3 c. If a business or group of businesses approved to 2 4 receive incentives under this part experiences a layoff within 2 5 the state or closes any of its facilities within the state 2 6 prior to receiving the incentives, the department may reduce 2 7 or eliminate some or all of the incentives. If a business or 2 8 group of businesses receives incentives under this part and 2 9 experiences a layoff within the state or closes any of its 2 10 facilities within the state, the business or group of 2 11 businesses may be subject to repayment of some or all of the 2 12 incentives received by the business or group of businesses. 2 13 2. The department shall adopt rules for repayment of 2 14 incentives by the business or group of businesses if the 2 15 business or group of businesses has not met any of the 2 16 requirements of this part. 2 17 Sec. 2. NEW SECTION. 15.333B FRANCHISE TAX CREDITS. 2 18 1. An eligible business may claim a franchise tax credit 2 19 up to a maximum of ten percent of the new investment directly 2 20 related to new jobs created by the location or expansion of an 2 21 eligible business under the program. Any credit in excess of 2 22 the tax liability for the tax year may be credited to the tax 2 23 liability for the following seven years or until depleted, 2 24 whichever occurs earlier. 2 25 For purposes of this section, "new investment directly 2 26 related to new jobs created by the location or expansion of an 2 27 eligible business under the program" means the cost of 2 28 machinery and equipment, as described in section 427A.1, 2 29 subsection 1, paragraphs "e" and "j", purchased for use in the 2 30 operation of the eligible business, the purchase price of 2 31 which has been depreciated in accordance with generally 2 32 accepted accounting principles, and the cost of improvements 2 33 made to real property which is used in the operation of the 2 34 eligible business. 2 35 For purposes of this section, the purchase price of real 3 1 property and any buildings and structures located on the real 3 2 property is considered a "new investment in the location or 3 3 expansion of an eligible business". However, if within five 3 4 years of purchase, the eligible business sells, disposes of, 3 5 razes, or otherwise renders unusable all or a part of the 3 6 land, buildings, or other existing structures for which a 3 7 franchise tax credit was claimed under this section, the 3 8 franchise tax liability of the eligible business for the year 3 9 in which all or part of the property is sold, disposed of, 3 10 razed, or otherwise rendered unusable shall be increased by 3 11 one of the following amounts: 3 12 a. One hundred percent of the tax credit claimed under 3 13 this section if the property ceases to be eligible for the tax 3 14 credit within one year after being placed in service. 3 15 b. Eighty percent of the tax credit claimed under this 3 16 section if the property ceases to be eligible for the tax 3 17 credit within two years after being placed in service. 3 18 c. Sixty percent of the tax credit claimed under this 3 19 section if the property ceases to be eligible for the tax 3 20 credit within three years after being placed in service. 3 21 d. Forty percent of the tax credit claimed under this 3 22 section if the property ceases to be eligible for the tax 3 23 credit within four years after being placed in service. 3 24 e. Twenty percent of the tax credit claimed under this 3 25 section if the property ceases to be eligible for the tax 3 26 credit within five years after being placed in service. 3 27 2. An eligible business which has entered into an 3 28 agreement under chapter 260E and which has increased its base 3 29 employment level by at least ten percent within the time set 3 30 in the agreement or, in the case of a business without a base 3 31 employment level, adds new jobs within the time set in the 3 32 agreement is entitled to a new jobs franchise tax credit for 3 33 the tax year selected by the business. In determining if the 3 34 business has increased its base employment level by ten 3 35 percent or added new jobs, only the new jobs directly 4 1 resulting from the project covered by the agreement and the 4 2 new jobs directly related to those new jobs shall be counted. 4 3 The amount of the credit is equal to the product of six 4 4 percent of the taxable wages upon which an employer is 4 5 required to contribute to the state unemployment compensation 4 6 fund, as defined in section 96.19, subsection 37, times the 4 7 number of new jobs existing in the tax year that directly 4 8 result from the project covered by the agreement or new jobs 4 9 that directly result from those new jobs. The tax year chosen 4 10 by the business shall either begin or end during the period 4 11 beginning with the date by which the project is to be 4 12 completed under the agreement. Any credit in excess of the 4 13 tax liability for the tax year may be credited to the tax 4 14 liability for the following seven years or until depleted, 4 15 whichever occurs earlier. For purposes of this subsection, 4 16 "agreement", "new job", and "project" mean the same as defined 4 17 in section 260E.2 and "base employment level" means the number 4 18 of full-time jobs a business employs at the site which is 4 19 covered by an agreement under chapter 260E on the date of that 4 20 agreement. 4 21 Sec. 3. Section 15E.193B, subsection 4, Code 2003, is 4 22 amended to read as follows: 4 23 4. The eligible housing business shall complete its 4 24 building or rehabilitation within two years from the time the 4 25 business begins construction on the single-family homes and 4 26 dwelling units. The failure to complete construction or 4 27 rehabilitation within two years shall result in the eligible 4 28 housing business becoming ineligible and subject to the 4 29 repayment requirements and penalties enumerated in subsection 4 30 7. The department may extend the prescribed two-year 4 31 completion period if the department determines that completion 4 32 within the two-year period is impossible or impractical as a 4 33 result of a substantial loss caused by flood, fire, 4 34 earthquake, storm, or other catastrophe. For purposes of this 4 35 subsection, "substantial loss" means damage or destruction in 5 1 an amount in excess of thirty percent of the project's 5 2 expected eligible basis as set forth in the eligible housing 5 3 business's application. 5 4 Sec. 4. Section 422.60, Code 2003, is amended by adding 5 5 the following new subsection: 5 6 NEW SUBSECTION. 7. The taxes imposed under this division 5 7 shall be reduced by a franchise tax credit authorized pursuant 5 8 to section 15.333B. 5 9 Sec. 5. Section 427B.17, subsection 5, unnumbered 5 10 paragraph 2, Code 2003, is amended to read as follows: 5 11 Any electric power generating plant which operated during 5 12 the preceding assessment year at a net capacity factor of more 5 13 than twenty percent, shall not receive the benefits of this 5 14 section or ofsectionssection 15.332and 15.334. For 5 15 purposes of this section, "electric power generating plant" 5 16 means any nameplate rated electric power generating plant, in 5 17 which electric energy is produced from other forms of energy, 5 18 including all taxable land, buildings, and equipment used in 5 19 the production of such energy. "Net capacity factor" means 5 20 net actual generation divided by the product of net maximum 5 21 capacity times the number of hours the unit was in the active 5 22 state during the assessment year. Upon commissioning, a unit 5 23 is in the active state until it is decommissioned. "Net 5 24 actual generation" means net electrical megawatt hours 5 25 produced by the unit during the preceding assessment year. 5 26 "Net maximum capacity" means the capacity the unit can sustain 5 27 over a specified period when not restricted by ambient 5 28 conditions or equipment deratings, minus the losses associated 5 29 with station service or auxiliary loads. 5 30 Sec. 6. Sections 15.334 and 15.334A, Code 2003, are 5 31 repealed. 5 32 Sec. 7. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 5 33 Sections 2 and 4 of this Act, relating to the franchise tax 5 34 credit, being deemed of immediate importance, take effect May 5 35 1, 2003, and, if approved by the governor after May 1, 2003, 6 1 shall apply retroactively to May 1, 2003. 6 2 HF 679 6 3 tm/es/25
Text: HF00678 Text: HF00680 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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